Middlebury Equity Partners is an organization whose purpose is to attract, to accept and to recognize non-traditional gifts, and future gifts to Middlebury College. Partnership is available to alumni, parents and friends who have made a major financial commitment to Middlebury by donating non-traditional liquid assets of intrinsic value now or by pledging assets that will be legally transferred to the College at some point in the future when a liquidity event has occurred. Unlike conventional gifts that can be easily valued at the time of the contribution or pledge, these commitments typically involve illiquid assets, limited partnerships, real estate partnerships, assignable stock options, royalties or other assets that are difficult and expensive to value and/or contain transfer or legal restrictions. They are, however, expected to appreciate greatly over the course of an investment cycle.
Given the difficulty, cost and complexity of establishing a fair market value for certain illiquid assets, the College will not place a present value on the pledges tendered. Rather, it will keep careful records pertaining to the asset and related governing documents, if appropriate. The dollar value will be recognized, and a tax-deductible charitable contribution will be made to the College when the asset has been monetized and the gift made. Typically, liquidity will be achieved through an IPO, sale of a company/real property, a distribution of cash or marketable securities, or an option exercise. The College will not manage a fund or a pool of assets. When cash or marketable securities are received, the donor will receive credit for the gift to Middlebury College.
While the Partnership is flexible in the type of pledges and liquid assets it will recognize, it is our hope that the donors will play an active and ongoing role in the appreciation of the assets pledged. Further, in some cases donors may maintain legal title, voting control and physical possession of the asset until the gift is actually made. Examples of pledges would include: general or limited partnership interests in venture; buyout or real estate funds; stock in privately held companies, restricted shares, options, share appreciation rights in public companies; and royalty streams – to mention a few.
The office of the treasurer at Middlebury College will review the terms, conditions and potential future value of pledged assets. Each pledge is then forwarded to the College for formal acceptance.
Benefits of Membership
Partners will enjoy an opportunity to network with others whose vision and commitment will have a significant impact on the College. The College will host at least one gathering each year at which “Partners” may also choose to expand their impact by sharing their business and management experience directly with students, staff and faculty. In addition we hope that Partners will choose to contribute to the academic mission of the College by attending or participating in symposia, lectures or classes that are related to their own professional experience.